Tax offences and transfer pricing documentation

The book shows that tax offences are not limited to failure to declare taxes and concealment of sales. In the course of a tax audit the tax inspector may observe an act of corruption that has led to the payment of bribes or he may himself have been corrupted.At this point the public prosecutor must decide which offence carries the heaviest penalty. As a result it may happen that in the context of the criminal prosecution of tax fraud the public prosecutor retains corruption as an offence. It is therefore important for African jurisdictions to review their tax legislation as corruption is a tax offence. However transfer pricing legislation also needs to be improved to facilitate the drafting of transfer pricing documentation.